CAL AMP STOCK IS OFF 30% EMPLOYEE LAWSUIT BEHIND SHARE DROP.Byline: Brent Hopkins Staff Writer OXNARD - Shares of California Amplifier Inc. plummeted nearly 30 percent Monday after the company reported late in the day that it is the target of an employee lawsuit and failed to meet Wall Street expectations. The satellite products manufacturer moved up its fourth quarter earnings release from Thursday in order to disclose the lawsuit. Details of the legal action were scarce, but Chief Financial Officer Rick Vitelle said it pertained to alleged violations of California's labor code. ``The company intends to defend itself vigorously,'' Vitelle said. ``Among other allegations, the lawsuit alleges the company allowed certain employees to take their lunch breaks late.'' Vitelle declined to discuss the litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. further, but in documents filed with the Securities and Exchange Commission, Cal Amp said the class action complaint dates back to October 2000. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the filing, employees had asked to take their breaks late, but the company still believes it could be liable for back wages and has established a reserve if the case proceeds. Though shares traded up about 7 percent on the day, investors shed the stock following the after-the-close report. In after-hours trading after-hours trading The trading of securities after the exchanges are closed. After-hours trading often refers to trading a listed security in the over-the-counter market after the exchanges have been closed for the day. , the stock dipped to $9.84, off $4.08 from its close. ``The market is very nervous about companies getting involved in lawsuits,'' said Jack Kyser, chief economist The Chief Economist is a single position job class having primary responsibility for the development, coordination, and production of economic and financial analysis. It is distinguished from the other economist positions by the broader scope of responsibility encompassing the of the Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. County Economic Development Corp. ``There's always a risk they could get involved in an outsized out·size n. 1. An unusual size, especially a very large size. 2. A garment of unusual size. adj. also out·sized Unusually large, weighty, or extensive. Adj. 1. settlement.'' At the same time, Cal Amp reported revenue of $41.6 million in the fourth quarter, up from $26.1 million in the same period the year before. Net income hit $3 million, 18 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , up from $1 million, 6 cents per share a year ago. The latest results missed analysts' estimates of 22 cents per share, but fell within the low end of the company's own guidance. For the full year, revenue rose to $128.6 million from $100 million in 2002. Income was $5.7 million, 37 cents per share, up from $5.2 million, 35 cents per share a year ago. Brent Hopkins, (818) 713-3738 brent.hopkins(at)dailynews.com |
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